By Neha Arora
NEW DELHI (Reuters) – India’s smaller steelmakers could be forced out of business by a further surge in imports resulting from sharp tariff increases imposed by U.S. President Donald Trump, industry executives warned on Monday.
With Indian producers already facing increased competition from rising cheap imports from some of the world’s leading producers, Trump has increased tariffs on steel and aluminium imports to a flat 25%.
“The increased tariffs may divert Chinese and other Asian exports to India while heightening competition, creating a downward pressure on domestic prices, and affecting small Indian producers with low-cost Chinese dumping,” said Anubhav Kathuria, managing director of stainless steel producer Synergy Steels.
Steel prices in India have already dropped in recent months, pressured by an influx of cheap imports, prompting smaller producers to consider job cuts, Reuters reported in December.
JSW Steel, India’s biggest steelmaker, reported a larger than expected decline in third-quarter profit last month, hit by lower prices, subdued demand and rising imports.
“We need to protect ourselves from other countries diverting steel to India because we do not have any safeguards,” said one senior steel company executive, who did not wish to be identified because he was not authorised to talk to the media.
India, which became a net importer of steel in the 2023/2024 financial year, is investigating whether to impose a temporary tax to curb imports.
Separately, the Indian Steel Association, has sought government intervention to secure exemption from U.S. tariffs.
(Reporting by Neha Arora; Editing by Mayank Bhardwaj and David Goodman)
